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Boeing Replaces Two More Directors as Part of Its Post-737 MAX Crisis Overhaul

By Lou Whiteman - Feb 17, 2021 at 10:00PM

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The company has now replaced four of its 10 directors.

Boeing (BA -5.07%) said late Wednesday that two of its directors are retiring. This is the latest development in the aerospace giant's response to criticism over its handling of the 737 MAX crisis.

Boeing said that Arthur Collins Jr., a board member since 2007, and Susan Schwab, a director since 2010, would not stand for reelection. Collins is the one-time CEO of Medtronic, while Schwab is a former U.S. trade representative.

Boeing's 737 MAX in flight.

Image source: Boeing.

The company is continuing to overhaul its governance following issues with its 737 MAX, which was grounded for nearly 20 months following a pair of fatal accidents in 2018 and 2019 that claimed a total of 346 lives. Post-accident investigations uncovered some embarrassing details about the safety culture at Boeing, eventually leading to the resignation of CEO Dennis Muilenburg.

Another board member, David L. Calhoun, replaced Muilenburg as CEO. Boeing last year replaced two longtime directors with new representatives who have engineering experience, adding former United Technologies exec Akhil Johri and Qualcomm CEO Steve Mollenkopf. Including the most recently announced changes, four of the 10 directors have been replaced since the accidents.

Boeing chairman Larry Kellner said that "the board will continue to take steps to identify a pipeline of diverse candidates with appropriate expertise who bring qualified perspectives."

Boeing still faces blowback from the crisis, including shareholder lawsuits accusing the board of lax oversight. Since the accidents, Boeing has also split the roles of chairman and CEO and added a safety committee to the board.

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